Transforming the Finance Function
Adding Company Wide Value in a Technology-Based Environment
2nd Edition
Published on 18. April 2002
Book
Paperback/Softback
224 pages
978-0-273-65666-1 (ISBN)
Description
"By the year 2005, the finance function as we know it will have changed almost beyond recognition. Transaction processing will be simplified, standardised, routine streamlined and automated. That's 60% of finance's current responsibilities about to disappear."
Gregory Hackett, Co-Founder of the US-based Hackett Group
The days of the traditional number-crunching finance department are numbered. Increasingly, world class companies are demanding that their finance function add positive value instead of draining revenue. Transaction processing and control account for 84% of their total activities. The function is not only spending little time on value-creating activities such as decision support and future planning, but it is also consuming a significant proportion of company's revenues.To rise to the challenge, finance departments must completely transform their activities. But how?
Essential reading for all Finance Directors,this bestselling briefing - now fully revised in a new edition - provides you with a complete toolkit to shift the role of the finance function from corporate scorekeeper to value generator. You will gain a thorough understanding of the extensive range of new techniques needed to fulfil this role and ensure that your finance department is central to your company's future success.
New to this edition:
new analysis of IT, shared service centres and outsourcing, balanced scorecard, shareholder value, beyond budgeting, best value
new case studies
Contents:
Introduction
PART 1 THE TWENTY-FIRST-CENTURY FINANCE FUNCTION
Finance in the twenty-first-century organization
The process of transforming the finance function
PART 2 THE TECHNOLOGY-DRIVEN FINANCE FUNCTION
Shared service centres
Outsourcing
Information management delivering business intelligence
PART 3 VALUE-BASED MANAGEMENT
Delivering shareholder value/best value
Valuing intangible assets/intellectual capital
PART 4 BEYOND TRADITIONAL BUDGETING
Scenario planning, forecasting and resource allocation
The balanced scorecard
Benchmarking
PART 5 EXECUTIVE SUMMARY
Gregory Hackett, Co-Founder of the US-based Hackett Group
The days of the traditional number-crunching finance department are numbered. Increasingly, world class companies are demanding that their finance function add positive value instead of draining revenue. Transaction processing and control account for 84% of their total activities. The function is not only spending little time on value-creating activities such as decision support and future planning, but it is also consuming a significant proportion of company's revenues.To rise to the challenge, finance departments must completely transform their activities. But how?
Essential reading for all Finance Directors,this bestselling briefing - now fully revised in a new edition - provides you with a complete toolkit to shift the role of the finance function from corporate scorekeeper to value generator. You will gain a thorough understanding of the extensive range of new techniques needed to fulfil this role and ensure that your finance department is central to your company's future success.
New to this edition:
new analysis of IT, shared service centres and outsourcing, balanced scorecard, shareholder value, beyond budgeting, best value
new case studies
Contents:
Introduction
PART 1 THE TWENTY-FIRST-CENTURY FINANCE FUNCTION
Finance in the twenty-first-century organization
The process of transforming the finance function
PART 2 THE TECHNOLOGY-DRIVEN FINANCE FUNCTION
Shared service centres
Outsourcing
Information management delivering business intelligence
PART 3 VALUE-BASED MANAGEMENT
Delivering shareholder value/best value
Valuing intangible assets/intellectual capital
PART 4 BEYOND TRADITIONAL BUDGETING
Scenario planning, forecasting and resource allocation
The balanced scorecard
Benchmarking
PART 5 EXECUTIVE SUMMARY
More details
Series
Edition
2nd edition
Language
English
Place of publication
Harlow
United Kingdom
Publishing group
Pearson Education Limited
Target group
Professional and scholarly
Dimensions
Height: 297 mm
Width: 210 mm
Thickness: 15 mm
Weight
830 gr
ISBN-13
978-0-273-65666-1 (9780273656661)
Copyright in bibliographic data and cover images is held by Nielsen Book Services Limited or by the publishers or by their respective licensors: all rights reserved.
Schweitzer Classification
Content
List of figures
Foreword
Introduction
Acknowledgements
PART 1 THE TWENTY-FIRST-CENTURY FINANCE FUNCTION
1 Finance in the twenty-first-century organization
Development of technology-driven finance from manual to 'lights out'
The challenges of the changing business environment
Changing roles of the twenty-first-century finance professionals
The finance function as facilitator of change, adding company-wide value
Case studies - Leading twenty-first-century organizations
2 The process of transforming the finance function
Introduction
Establishing the transformation project
Analyze the present finance function activities/processes
Develop the vision for the future of the finance function
Create the change strategy
Aligh staff skills and competencies
Implement the transformation
Monitor the success and results of implementation
Case studies - Worldwide excellence in finance
PART 2 THE TECHNOLOGY-DRIVEN FINANCE FUNCTION
3 Shared service centres
Introduction
Which processes are best suited to an SSC?
Checklist of technical considerations in establishing an SSC
Phases in the implementation of an SSC
Benefits of the SSC approach
Case study - SSCs at Ciba Speciality Chemicals
4 Outsourcing
Introduction
IT outsourcing - risks, problems and lessons learnt
Outsourcing the finance function
Application service providers
Outsourcing partnerships
Case study - Outsourced shared services at the BBC
5 Information management delivering business intelligence
Introduction
Defining the business requirements
Technological developments
Formulating a company-wide information strategy
Knowledge management
Decision support and business intelligence tools
Case study - Data warehousing at Nationwide
PART 3 VALUE-BASED MANAGEMENT
6 Delivering shareholder value/best value
Introduction
Rappaport's theory
Shareholder value calculation models
EVA exercise
EVA example
SVA options matrix
Best Value
Embedded value-based management
Characteristics of VBM organizations
Inter-business unit charging and service level agreements
Case study - Creating corporate value at Wienerberger
Case study - Value-based management at British Aerospace
7 Valuing intangible assets/intellectual capital
Introduction
Customer (relational) capital
Organizational (structural) capital
Human capital
Corporate reputation
Enterprise risk managememt (ERM)
Ethical, environmental and social reporting
Case studies - Managing intangibles
PART 4 BEYOND TRADITIONAL BUDGETING
8 Scenario planning, forecasting and resource allocation
Resource allocation
Empowered organizational culture
Beyond traditional budgeting
Scenario planning
Forecasting
Case studies - Beyond traditional budgeting
9 The balanced scorecard
Introduction
Measures that drive performance
The strategy-focused organization
Weighting the balanced scorecard
The ten commandments of implementation
Links to quality frameworks
Case studies - e-BSC
Case study - Manchester Housing's information strategy
10 Benchmarking
Introduction
Types of benchmarking
Data-gathering methods
Phases of the benchmarking process
The Benchmarking Code of Conduct
Benefits of benchmarking
Case study - Tower Hamlets benchma
Foreword
Introduction
Acknowledgements
PART 1 THE TWENTY-FIRST-CENTURY FINANCE FUNCTION
1 Finance in the twenty-first-century organization
Development of technology-driven finance from manual to 'lights out'
The challenges of the changing business environment
Changing roles of the twenty-first-century finance professionals
The finance function as facilitator of change, adding company-wide value
Case studies - Leading twenty-first-century organizations
2 The process of transforming the finance function
Introduction
Establishing the transformation project
Analyze the present finance function activities/processes
Develop the vision for the future of the finance function
Create the change strategy
Aligh staff skills and competencies
Implement the transformation
Monitor the success and results of implementation
Case studies - Worldwide excellence in finance
PART 2 THE TECHNOLOGY-DRIVEN FINANCE FUNCTION
3 Shared service centres
Introduction
Which processes are best suited to an SSC?
Checklist of technical considerations in establishing an SSC
Phases in the implementation of an SSC
Benefits of the SSC approach
Case study - SSCs at Ciba Speciality Chemicals
4 Outsourcing
Introduction
IT outsourcing - risks, problems and lessons learnt
Outsourcing the finance function
Application service providers
Outsourcing partnerships
Case study - Outsourced shared services at the BBC
5 Information management delivering business intelligence
Introduction
Defining the business requirements
Technological developments
Formulating a company-wide information strategy
Knowledge management
Decision support and business intelligence tools
Case study - Data warehousing at Nationwide
PART 3 VALUE-BASED MANAGEMENT
6 Delivering shareholder value/best value
Introduction
Rappaport's theory
Shareholder value calculation models
EVA exercise
EVA example
SVA options matrix
Best Value
Embedded value-based management
Characteristics of VBM organizations
Inter-business unit charging and service level agreements
Case study - Creating corporate value at Wienerberger
Case study - Value-based management at British Aerospace
7 Valuing intangible assets/intellectual capital
Introduction
Customer (relational) capital
Organizational (structural) capital
Human capital
Corporate reputation
Enterprise risk managememt (ERM)
Ethical, environmental and social reporting
Case studies - Managing intangibles
PART 4 BEYOND TRADITIONAL BUDGETING
8 Scenario planning, forecasting and resource allocation
Resource allocation
Empowered organizational culture
Beyond traditional budgeting
Scenario planning
Forecasting
Case studies - Beyond traditional budgeting
9 The balanced scorecard
Introduction
Measures that drive performance
The strategy-focused organization
Weighting the balanced scorecard
The ten commandments of implementation
Links to quality frameworks
Case studies - e-BSC
Case study - Manchester Housing's information strategy
10 Benchmarking
Introduction
Types of benchmarking
Data-gathering methods
Phases of the benchmarking process
The Benchmarking Code of Conduct
Benefits of benchmarking
Case study - Tower Hamlets benchma